According to news reports, the government is expected to soon issue a notification on the increase in the foreign direct investment (FDI) limit in the telecom sector from 49 per cent cap at present to 74 per cent. The government first announced an increase in the FDI ceiling to 74 per cent last year. The proposal received cabinet approval in February 2005, despite strong opposition from the left parties. However, the government could not issue the notification because it was not clear whether the foreign investment in Indian banks and FIIs, which have investment in telecom, would constitute foreign equity.
